What is cooperative insurance ?

Cooperative insurance is form of
insurance policy offered by organizations such as trade unions, corporations or associations to its members.
It is a mutual form of aid where premiums are shared by member in order to establish
a mutual fund or assets that can later be used by members to aid or help them at
the time of unexpected eventualities. Unlike
any compensation paid out by traditional insurance companies, pay outs or aids given
out under cooperative insurance are not strictly compensation but a form of aid for
members to help them go on with their daily lives in spite of of the unexpected contingencies. Cooperative insurance
can cover a number of contingencies and losses such as financial deficit, burglary,
health and hospitalization, damage to property such as a house and even car or
road accidents.

Cooperative insurance only covers its members
and properties or eventualities considered to be under the organization’s
jurisdiction.

For example, when one buys property managed
by a cooperative, corporation or an association such as an apartment or
housing unit, the property is already
under the jurisdiction of a cooperative or a corporation, of which the
buyer is
already a member and has shares in it. The property will already be
covered by
an insurance policy that covers it for various claims and eventualities.
The policy
will be extended to the shareholders and this form of coverage is what
is
called cooperative insurance. Owners
of the units will be covered under the units or apartments they have
acquired. The
owners can make claims eventualities they encounter under the buildings
such as
exposure to harmful radiations and damage to the building due to
accidents. In case of the radiations or sewer problems for example, the
health of the member will be the responsibility of the corporation. In
case of damage to personal property inside the units or apartments, the
policy will cover this eventuality since it has happened inside the
apartment which is under the jurisdiction of the corporation or
organization.

Since cooperative insurance does not necessarily work like the traditional
insurance, it is not automatic that cooperative insurance must work in the same
way in all corporations or organizations. It is advisable that one does some
personal research on the scope of what is covered under cooperative insurance
in terms of personal cover or property cover in a specific corporation or
organization before joining or subscribing to it.